TORONTO, March 4,
2024 /CNW/ - RBC Global Asset Management Inc.
("RBC GAM Inc.") today announced changes to the asset allocation
strategy or "glidepath" for the existing RBC Retirement (2020 to
2060) Portfolios (the "Portfolios").
The Portfolios are designed primarily for investors who are
saving money for the purpose of retirement, and use a "glidepath"
that adjusts the asset mix of the portfolio relative to a target
retirement year. When the investment horizon is long (i.e., the
target retirement year is well into the future), the Portfolios
invest mostly in equity funds with a focus on delivering growth
potential. When the investment horizon is short (i.e., the target
retirement year is nearing or has passed), the asset mix becomes
more conservative to help preserve capital through income-oriented
investments, such as fixed income funds. At launch in 2016, a
number of assumptions about the investor were used to design the
glidepath for the Portfolios, which were updated in 2020. These
assumptions are now being revised to the following:
Glidepath changes
Previous
|
Revised
|
Asset
Mix
|
Fixed income
funds* (%) /
Equity funds (%)
|
Asset
Mix
|
Fixed income funds*
(%) /
Equity funds (%)
|
At age
25
|
50/50
|
From ages 25 to
42
|
10/90
|
From ages 30 to
55
|
35/65
|
From ages 43 to
65
|
Equity allocation
decreases
as asset mix becomes more
conservative
|
From ages 55 to
65
|
Equity allocation
decreases
as asset mix becomes
more conservative
|
At age
65
|
60/40
|
At age
65
|
60/40 (No
change)
|
With these glidepath changes, the current asset mix for the
Portfolios will have a decrease in allocation to fixed income
funds, and a corresponding increase in allocation to equity
funds.
Asset mix: RBC Retirement (2035 to 2060) Portfolios
Target Retirement
Year
|
Fixed income funds*
(%) /
Equity funds (%)
(Previous)
|
Fixed income funds*
(%) /
Equity funds (%)
(Revised)
|
2035
|
35/65
|
32/68
|
2040
|
35/65
|
20/80
|
2045
|
35/65
|
11/89
|
2050
|
35/65
|
10/90
|
2055
|
35/65
|
10/90
|
2060
|
41/59
|
10/90
|
The percentages may vary up to 15% above or below the weightings
indicated in the table, as described in the prospectus for the
Portfolios. There are no changes to the asset mix for the remaining
RBC Retirement (2020 to 2030) Portfolios.
Please consult your advisor and read the prospectus or Fund
Facts document before investing. There may be commissions, trailing
commissions, management fees and expenses associated with mutual
fund investments. Mutual funds are not guaranteed, their values
change frequently and past performance may not be repeated. RBC
Funds, BlueBay Funds and PH&N Funds are offered by RBC GAM Inc.
and distributed through authorized dealers in Canada. RBC GAM Inc. is a member of the RBC
GAM group of companies and an indirect wholly owned subsidiary of
Royal Bank of Canada.
_______________________________
|
* May include money
market funds
|
About RBC
Royal Bank of Canada is a
global financial institution with a purpose-driven, principles-led
approach to delivering leading performance. Our success comes from
the 94,000+ employees who leverage their imaginations and insights
to bring our vision, values and strategy to life so we can help our
clients thrive and communities prosper. As Canada's biggest bank, and one of the largest
in the world based on market capitalization, we have a diversified
business model with a focus on innovation and providing exceptional
experiences to our 17 million clients in Canada, the United
States and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
About RBC Global Asset
Management
RBC Global Asset Management (RBC GAM) is the asset
management division of Royal Bank of Canada (RBC) and includes money managers
BlueBay and Phillips, Hager & North Investment Management. RBC
GAM is a provider of global investment management services and
solutions to institutional, high-net-worth and individual investors
through separate accounts, pooled funds, mutual funds, hedge funds,
exchange-traded funds and specialty investment strategies. The RBC
GAM group of companies manage approximately $575 billion in assets and have approximately
1,500 employees located across Canada, the United
States, Europe and
Asia.
SOURCE RBC Global Asset Management Inc.